Exercise 14-2 (Algo) Net Present Value Analysis [LO14-2] The management of Kunkel Company is considering the purchase of a $21,000 machine that would reduce operating costs by $5,000 per year, At the end of the machine's five-year useful life, it wil have zero salvage value. The company's required rate of return is 12%. Click here to view and Exhibit 14B-2, to determine the appropriote discount factor(s) using table. Required: 1. Determine the net present value of the investment in the machine. 2. What is the difference between the total, undiscounted cash inflows and cash outhows over the entire life of the machine? Complete this question by entering your answers in the tabs below. Determine the net present value of the investment in the machine. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Use the approgriate table to determine the discount factor(s).) FXIIIBIT 1415-1 Prrocet Value of \$1: (n+)21 XHIBTI 14B=2 Present Value of an Anneity of $1 in Arrears; r1[1(1+r)71]